The primary goal of philanthropy is to solve issues, not to donate money. A philanthropic endeavor that does not develop a self-monetizing and sustainable financial model would ultimately fail, similar to today’s start-ups that accept venture capital funding but never make a profit. Instead, philanthropists should approach societal concerns like opportunities to launch successful businesses.
‘’I believe that a successful business isn’t just about the amount of money made. It is also about the amount that is given back one way or another to the community and the contribution you make to the wider world,’’ Stephen Taylor, a prominent Jewish businessman, and philanthropist, says.
True philanthropy necessitates a disruptive attitude, creative problem-solving, and a philosophy fueled by business insights and inventive prospects. Thus, we must use the same patterns for success in charitable and commercial enterprises if we are to challenge the existing quo, promote philanthropy at a massive scale, and foster long-term economic viability through giving.
Unfortunately, no formula can make philanthropy a surefire success. However, here is a list of suggestions for philanthropic achievement.
A business venture cannot be sustainable if it is not profitable. Philanthropic donations should be viewed as venture capital and only utilized to launch and expand businesses when their core concepts have been validated on a smaller scale.
Take the case of someone who runs a homeless shelter in a community. Unfortunately, most of these shelters are always in need of funds. So what can be done to create sustainability? For instance, reconsidering the shelter’s overall design to make it self-sustaining rather than reliant on outside funding is a sustainable approach. The inhabitants can learn skills and hands-on activities to sustain the shelter to be on the safe side whenever donations are not forthcoming.
Sustainability is the foundation of any successful corporate activity, and the same should be true of charitable undertakings. ‘’Although anyone can experience luck, truly sustained success has never come to anyone quickly or without effort. Since everyone else had to work for it, why should my story—or yours—be any different?’’ Stephen Taylor, a firm supporter of The Boys Clubhouse (a Jewish charity), says.
Open communications between the grantees and donors
The love of humanity is what philanthropy is all about. Nothing about wealth is mentioned in the definition. However, wealth is frequently required to finance charitable endeavors, resulting in an odd dynamic between the recipient and the giver.
This connection becomes unbalanced due to the philanthropy industry’s inescapable emphasis on money. A meaningful partnership may only blossom, though, if the causes that the grantee and donor both support are made clear.
Solutions scalable for international markets
Scale is required for that. Testing a product locally in niche markets is okay, but we must ensure that the solution can be scaled up once proven effective. We are not doing honor to the cause if we enter humanitarian endeavors out of fear of achieving massive success.
Rethinking both the problem and the solution is necessary, which entails turning infrastructure difficulties into information-gap issues. To close the gap is our responsibility and overall objective.
Building new schools and preserving an outdated system that dates back to the industrial revolution should not be the focus of education. Through the use of interactive learning and software, we can accomplish a staggering amount more. For instance, stakeholders can consider how linked sensors and artificial intelligence can handle healthcare diagnostics without using costly, out-of-date physical infrastructure like hospitals.
Make outstanding teams
A great entrepreneur understands that success is directly correlated to the caliber and talents of their team. Still, most philanthropists tend to band together and construct their teams around friends, family, or other people who just so happen to be retired or with a lot of free time on their hands.
We cannot only collaborate with anyone who happens to be accessible or who happens to share our enthusiasm in their golden years. Great teams are the foundation of all profitable endeavors, whether they be in business or philanthropy. These teams should be equipped with the knowledge and connections necessary to help us overcome enormous obstacles.
True disruption in philanthropy requires thinking big and focusing on huge markets and opportunities, just as in business. Your company won’t suddenly become worth billions of dollars by solving a million-dollar problem. In other words, you need to find a $10 billion solution to build a $1 billion company.
Locally, many philanthropists and volunteers work diligently and donate their time and money to aid the ill, the impoverished, and others in need. But why end there? While localized philanthropy is admirable, it has repeatedly shown itself unable to expand to the levels required to promote economic growth and bring about the transformative changes we all desire.
Don’t you think our charitable endeavors deserve, no, demand, the same amount of bold hope and boundless opportunity as our commercial endeavors? Beyond our local communities, we have a vast influence for good, and there is little doubt that we may act similarly while considering our local communities and the wider world.
Keep your organization running like a company
While the motivation for charitable activity comes from compassion and will, establishing a charitable foundation calls for changing one’s perspective and approaching the enterprise as a business.
As Stephen Taylor puts it, tight financial discipline, keeping costs to an absolute minimum, and measuring key business objectives and monthly business accounts against the projected goals contribute to successful business outcomes. Achieving progress in philanthropic endeavors will be successful and effective when the disciplines and procedures of running a business are applied.
Use flexible philanthropy instead of a set plan
Both are intelligent and useful when creating a vision and goals. Although it does not limit itself to rigid multi-year planning, adaptive philanthropy has a clear objective. Every charitable endeavor is a dynamic process, and none is exempt from the vast array of variables that could make things difficult. The procedure will inevitably involve risks and uncertainty.
It is an affirmation that philanthropy thrives when built on entrepreneurial zeal and adaptability.